Oeconomia 13 (2) 2014, 117–125

THE IMPORTANCE OF CORPORATE SOCIAL

RESPONSIBILITY OF ENTERPRISESE IN BUSINESS

Andrzej Soroka, Anna Mazurek-Kusiak

University of Life Sciences in Lublin

Abstract. The aim of the study was to determine actions that should be undertaken by
companies to be seen as socially responsible, and what factors influence on the choice of
the employer by respondents. A diagnostic survey method was used including the author’s
questionnaire, which was tested upon 1,157 residents of Lubelskie Province. The stratified
random selection was applied, and discriminant function analysis for statistical calcula-
tions. According to respondents, a socially responsible company is such that prefers ethical
action, well treats the employees, has a honest relationship with employees and customers,
as well as supports charity and ecological organizations. When choosing an employer, earn-
ings, opinion of employees about the atmosphere in the company, and the prospect of the
employees development proved to be the most important. Experiences of other countries
should be used in Corporate Social Responsibility (CSR) in order to achieve the most prac-
tical management methods, while entrepreneurs should be familiarized with the importance
of CRS, and take care of the social approval of their company in media, as well as seek to
cooperate with the authorities and the local community.

Key words: Corporate Social Responsibility of entrepreneurs, ethical activity, Lubelskie

Province

INTRODUCTION

Corporate Social Responsibility (CSR) is a new, voluntary strategy including social,

economic, ethical, and ecological aspects of a business in dealing with the environment
[Carroll 1979]. It is also an ethical commitment to a business for economic development
by improving the life quality of employees and their families, as well as the welfare of
society as a whole [Dahlsrud 2008]. The term Corporate Social Responsibility is now
widely used in the international business arena [Lindgreen et al. 2009].

Corresponding authors – Adres do korespondencji: Andrzej Soroka, University of Life Sciences in

Lublin, Department of Tourism and Recreation, u. Akademicka 13, 20-950 Lublin, Poland, email:
wachmistrz_soroka@o2.pl
118 A. Soroka, A. Mazurek-Kusiak

The approach to the business is changing in Poland; it is no longer limited only to

multiply profits, but is aimed at non-economic activities, that greatly affect the function-
ing of a company and determine its quality [Rybak 2004]. Research conducted by MIT
Sloan Management Review showed that currently 70% of U.S. companies taking into
account the sustainable development in their business plans, have done it for six years,
20% of them – for two years, which undoubtedly is a good omen for Polish enterprises
[Kiron et al. 2012].
Business activity affects the whole society and thus entrepreneurs should carry out
such activities that would be consistent with the social objectives and values [Bowen
1953] and it is a view not only to the personal interest of the company, but also to the
willingness to take the responsibility for social matters [Rabiański 2011].
CSR is a great tool to strengthen the company’s position in the market [Handelman,
Arnold 1999] by presenting a positive and ethical corporate image in the local commu-
nity [Sen, Bhattacharya 2001]. Ethics of the company comes directly from the idea of
corporate social responsibility and sustainable development. Responsible and sustainable
company targets to include ethical standards into strategy and to use them in a conscious
way [Paliwoda-Matiolańska 2009].
Motivations to be engaged in social and environmental initiatives vary considerably
between companies. Some use CSR as a tool to improve their relationships with stake-
holders, while others – as a way to increase operational efficiency, or approach to CSR as
morally legitimate actions [Pedersen 2006a, Pedersen, Neergard 2006]. Researchers say
that a concern for image of the company is the primary motivation applying CSR. Also,
the essential motivations include ethical and moral actions aimed at achieving intended
activities within CSR [Poksinska et al. 2003, Pedersen 2006b].
It is accepted that the most important and key issues that affect the development of
CSR are: relationships with consumers (74%) and employees (72%), proper organization
of work in the company (65%), and honest relationships with customers and business
partners (53%) [PARP 2012]. Through systematic monitoring, companies watch effects
of their actions aimed at: customers, suppliers, society, employees, and others who have
an interest in the company [Lee 2008].
The aim of this study was to determine what actions should be undertaken by Polish
companies to be seen as socially responsible. The aim was also to identify factors, re-
spondents focus on, when choosing an employer. The level of corporate social responsi-
bility was determined by means of presenting opinions of Lublin region residents.

MATERIAL AND METHODS

The study applied a diagnostic survey method including the author’s questionnaire to
test 1,157 respondents from Lubelskie Province. The study was conducted in April 2013.
To measure the attitudes, a five-point Likert scale was used after having the construction
and validation procedure. The scale reliability index was calculated, in which Cronbach’s
alpha was 0.87. The criterion for dividing respondents into research groups was the level
of their education. Stratified random selection was applied in the sampling procedure.
Population was divided taking into account the place of residence: village, town below

Acta Sci. Pol.

The importance of Corporate Social Responsibility of enterprisese in business 119

20 thousand inhabitants, and urban residents in cities with more than 20 thousand inhabit-
ants [GUS 2012]. In the next stage of sampling, the number of men and women was pro-
portionally determined. These actions allowed for calculating the sample size, in which
the confidence level was set at 0.95, estimated fraction size at 0.50, and the maximum
error at 0.03. When selecting the sample and taking into account the gender and residence
place of studied population, the quota sampling, in which respondents were selected on
the basis of their availability, was used.
Of tested respondents, 43.6% were residents of rural areas, 20.2% lived in small towns,
while 36.3% – in cities with over 20 thousand residents. In 29.5%, respondents had higher
education degree, 59.9% graduated secondary school, and 10.6% had vocational and ba-
sic schools education degree. In the age group up to 30 years old, respondents accounted
for 53.9%, from 31 to 45 years old – 24.6%, from 46 to 60 years old – 17.0%, and 61 or
more years old – 4.5%. Surveyed women accounted for 51.6% of the respondents, while
men for 48.5%.
Statistical analyzes were performed using Statistica 8.1 PL software including the
discriminant function analysis, that is used for the settlement which variables discrimi-
nate the emerging group. Classification functions were used in the form of calculating
their coefficients that were determined for each group [Stanisz 2007]. Prior to analysis,
the multidimensional normality was examined by verifying each variable for distribu-
tion normality. It was assumed that the variables variance matrices are homogeneous in
groups. Slight deviations were not so important, because of the large number of respond-
ents in particular groups [Tabachnik, Fidell 1996].

RESULTS

Among seven factors making up the attempt to assess companies as socially respon-
sible in the model of discriminant function, there were five, namely: supporting charities,
environment protection, providing jobs, good treatment of employees, and being honest
with customers and employees. The total value of Wilks’ lambda of discriminant func-
tion, as well as calculated values for particular activities were close to 1, which indicates
poor discrimination power of these functions. Besides the model, following factors that in
respondents’ opinion had little impact on the assessment of entrepreneurs, were included:
fair tax paying and taking into account the common good by entrepreneurs (Table 1).
Certain classification functions for three groups of respondents showed that the most
important factor that determined the company as socially responsible was good treatment
of the employees. Value of this factor was similar in all groups of respondents, which in-
dicates no significant differences between them. Values of factor taking into account the
fair relation of entrepreneur towards customers and employees were on the same levels.
Also in this case, no significant differences between groups were identified. Nearly four
times less importance were characterized by activities of companies that were directed
at supporting charities and environmental protection. Supporting charities was signifi-
cantly less important factor for respondents with higher than secondary, basic and voca-
tional education degree. Measures aimed at protecting the environment had significantly
greater importance among respondents with higher and secondary education than primary

Oeconomia 13 (2) 2014

120 A. Soroka, A. Mazurek-Kusiak

Table 1. Rank of company activities for social responsibility in the opinion of Lubelskie Province
residents (summary of the discriminant function analysis – variables in the model; Wilks’
lambda = 0.975, approximate F(12.229) = 2.359, p < 0.005)

F of introduction
Partial Wilks’

1-tolerance
(R-square)
Activity

Tolerance
lambda

lambda

p-level
Wilks’
Supporting charities 0.985 0.989 5.810 0.003* 0.856 0.143
Protecting the environment 0.979 0.996 3.084 0.034* 0.912 0.087
Providing jobs 0.980 0.995 2.823 0.049* 0.914 0.085
Good treatment of employees 0.979 0.996 2.054 0.128 0.780 0.219
Fairness in relation to customers and employees 0.977 0.997 1.185 0.306 0.761 0.238
* significance level at p < 0.050.
Source: Own elaboration.

and vocational education degrees. Providing employment by the employer was the least
important among factors chosen for the model. It was significantly more important for
respondents with primary and vocational education, than with secondary and higher edu-
cation levels (Table 2).

Table 2. Rank of company activities for social responsibility in the opinion of Lubelskie Province
residents (determination of the classification functions for each group)
Respondents with
primary and
Activity secondary higher
vocational
education degree education degree
education degree
(p = 0.598) (p = 0.292)
(p = 0.106)
Supporting charities 1.073 1.090 0.892
Protecting the environment 0.806 1.027 1.071
Providing jobs 0.901 0.756 0.779
Good treatment of employees 4.410 4.697 4.649
Fairness in relation to customers and employees 4.614 4.399 4.417
Constant 28.877 27.041 27.915
Source: Own elaboration.

To examine the activities that have the greatest influence on the choice of employer,
10 factors were selected, from which 5 got into the discriminant function model, namely:
prospect of employees development by means of training and courses, honesty employer,
company brand, opinion of employees on the working atmosphere, and the amount of
offered wages. Value of Wilks’ lambda was determined for 0.960 at p < 0.001. Following
factors were beyond the discriminant function model: possibility of advancement, good
corporate image in the community, size of the company, the company’s involvement in
social and environmental responsibility of the employer (Table 3).

Acta Sci. Pol.

The importance of Corporate Social Responsibility of enterprisese in business 121

Table 3. Actions influencing on the choice of the employer by employee in the opinion of residents
(summary of the discriminant function analysis – variables in the model; Wilks’ lambda =
= 0.975, approximate F(12.229) = 2.359, p < 0.005)

Partial Wilks’ lambda

F of introduction
Wilks’ lambda
Activity

1-tolerance
(R-square)
Tolerance
p-level
The prospect of the development – training etc. 0.969 0.991 5.142 0.005* 0.761 0.238
Honesty of the employer 0.965 0.995 2.658 0.070 0.811 0.188
Company brand 0.966 0.994 3.245 0.039* 0.933 0.066
Opinion of the employees on the atmosphere at work 0.966 0.944 3.230 0.040* 0.926 0.071
Level of the proposed earnings 0.964 0.996 2.060 0.128 0.921 0.078
* significance level at p < 0.050.
Source: Own elaboration.

When choosing an employer, the most important factor, according to respondents,

was the height of proposed salary. Value of this factor was high in all studied groups.
The opinion of employees about the working atmosphere, which was significantly more
important for respondents with vocational and basic (4.268) than with higher education
degree (4.005), was also of great importance. High average values in the classification
function were also ranked by activities related to prospects of workers development, in
which respondents with higher education degree (3.115) were significantly the most in-
terested, while to the least extent by respondents with basic and vocational education
degree (2.683). The company brand was much less important for respondents when

Table 4. Classification functions related to the choice of the employer by employees with regard
to the place of residence

Respondents with
primary and
Activity secondary higher
vocational
education degree education degree
education degree
(p = 0.598) (p = 0.292)
(p = 0.106)
The prospect of the development – training etc. 2.683 2.916 3.115
Honesty of the employer 0.790 0.972 0.876
Company brand 1.801 1.247 1.320
Opinion of the employees on the atmosphere
at work 4.268 4.185 4.005
Level of the proposed earnings 4.800 5.010 4.886
Constant 30.140 31.147 31.561
Source: Own elaboration.

Oeconomia 13 (2) 2014

122 A. Soroka, A. Mazurek-Kusiak

choosing an employer, which had significantly higher ranks in the group of respondents
with primary education and vocational (1.801) rather than higher (1.320) and secondary
education level (1.247) – Table 4.

DISCUSSION

The aim of research assumed to identify factors that distinguish a company as socially
responsible. It has been shown that for respondents, the most important activity should be
ethical, i.e. good and fair treatment of employees and customers by the company. Ethics
thus becomes the foundation of CSR, which should be developed through mutual conces-
sions based on the law that functions in a given society. Without this there is no ethics and
ethical standards in the company activity [Rabiański 2011].
Supporting charities is one of the most important factors that affects the recognition
of the company as a socially responsible business. This is consistent with principles of
functioning within CSR, as it is recommended that companies to keep balanced policy in
order to increase their benefits, but also to reduce and even to eliminate damages result-
ing from their activities by investing in social infrastructure, such as building schools and
hospitals. These activities are aimed at balancing the effects of business activity through
a positive impact on the society, in which they functioning. Lack of such approach can re-
sult in a lack of public acceptance for the company’s operations, cut it off from resources,
and consequently its liquidation [Walsh et al. 2003, Frederick 2006].
An important factor prominent in research, is the support the activities related to en-
vironmental protection by businesses. In well-developed countries there is a high will-
ingness to support initiatives for sustainable development of society, including activities
related to ecology. It is a sign of a highly developed awareness of taking care of natural
and ecologically clean environment, which is necessary for the proper functioning of
people. A greater interest in environmental protection among younger respondents is
shown, which is confirmed by a negative correlation between age and perception of envi-
ronmental qualities [Johnson et al. 2004].
The choice of employers problem indicated that amount of proposed wages and em-
ployee’s opinion on atmosphere at work was focused greatly by respondents with pri-
mary and vocational education levels. An important problem for the respondents, is the
ability to upgrade their professional qualifications through training courses organized by
employer. The study has also raised the problem of the company’s brand, which when
choosing an employer, the greatest attention was paid by respondents with primary and
vocational education degree as well.
Being socially responsible means for individuals and organizations to manifest ethical
behavior and to demonstrate sensitivity to the social, cultural, economic, and environ-
mental issues. It is confirmed that the implementation of these behaviors is beneficial for
the functioning of businesses. For example, the Asia-Pacific CSR Group was established
to support activities related to environmental protection and human resources in this re-
gion of the world [Gautam, Singh 2010]. Also, companies in the aviation industry have
incorporated CSR into their business structures due to the negative impact of its operation
on the environment, and the issue concerned the limitation of pollutants emission and

Acta Sci. Pol.

The importance of Corporate Social Responsibility of enterprisese in business 123

noise reduction [Cowper-Smith, de Grosbois 2011]. Executives believe that CSR creates
a competitive advantage for their businesses, thereby increasing its market share [McWil-
liams, Siegel 2001].
Today, corporate social responsibility is no longer seen as a moral responsibility of
business people, but as a strategic resource that aims to improve the efficiency of func-
tioning between society and corporation [Lee 2008]. Despite the voluntary of CSR in-
troduction, it is not quite voluntary concept, because CSR is a contemporary need for
a long-term and stable business development [PARP 2012].
It has been shown that American companies profiting from the use of CSR are more
likely to cooperate with external partners, have well-defined business model based on
CSR, and most importantly, have a management team who are heavily involved in CSR
[Kiron 2012]. The key benefits of CSR are: positive image of the company, motivat-
ing employees, income and savings, and good relationship with the environment [PARP
2012].

CONCLUSIONS

1. In activities for sustainable development of Lubelskie Province, systematic study

and learn from experiences of other countries in order to achieve the most practical
methods of management in accordance with the interests of entrepreneurs, particularly
in harmony with a society and environment, in which they function, are extremely
important.
2. Trainings and realizing the entrepreneurs, what CRS is, should be carried out. As
confirmed by studies, this has been implemented in a perfect way in the United States,
where in a short time nearly 90% of companies have started to introduce the principles
of CSR.
3. Publicizing the activities established by a company for social responsibility in the
media and through the web sites, will bring positive results in a form of good recep-
tion of the company and the approval of the local community for these activities.
4. There is a need for the involvement and cooperation of local community representa-
tives, environmentalists, politicians, representatives of local authorities, supported by
the preparation of development plans for the region to achieve the sustainable devel-
opment of society through corporate social responsibility.

REFERENCES

Bowen H.R., 1953. Social Responsibilities of the Businessman. Harper and Row, New York.
Carroll A.B., 1979. A three-dimensional conceptual model of corporate performance. Academy of
Management Review 4(4), 497–505.
Cowper-Smith A., de Grosbois D., 2011. The adoption of corporate social responsibility practices
in the airline industry. Journal of Sustainable Tourism 19(1), 59–77. doi:10.1080/09669
582.2010.498918.

Oeconomia 13 (2) 2014

124 A. Soroka, A. Mazurek-Kusiak

Dahlsrud A., 2008. How corporate social responsibility is defined: An analysis of 37 definitions.
Corporate Social Responsibility & Environmental Management 15(1), 1–13. doi:10.1002/
csr.132.
Frederick W.C., 2006. Corporation, Be Good: The Story of Corporate Social Responsibility. Dog
Ear Publishing, Indianapolis.
Gautam R., Singh A., 2010. Corporate social responsibility practices in India: A study of top 500
companies. Global Business & Management Research 2(1), 41–56.
GUS, 2012. Rocznik Statystyczny Województwa Lubelskiego (Statistical Yearbook of Lublin Pro-
vince). (in Polish).
Handelman J.M., Stephen J.A., 1999. The role of marketing actions with a social dimension: Ap-
peals to the Intuitional Environment. Journal of Marketing 63(3), 33–48.
Johnson C.Y., Bowker J.M., Cordell H.K., 2004. Ethnic variation in environmental belief and beha-
viour: An examination of the new ecological paradigm in a social psychological context.
Environment and Behaviour 36(2), 157–186. doi: 10.1177/0013916503251478.
Kiron D., Kruschwitz N., Haanaes K., Von Streng Velken I., 2012. Sustainability nears a tipping
point. MIT Sloan, Management Review 53(2), 69–74.
Lee M.D.P., 2008. A review of the theories of corporate social responsibility: its evolutionary path
and the road ahead. International Journal of Management Review 10(1), 53–73. doi:
10.1111/j.1468-2370.2007.00226.x.
Lindgreen A., Swaen V., Maon F., 2009. Introduction: Corporate social responsibility implementa-
tion. Journal of Business Ethics 85, 251–256. doi:10.1007/s10551-008-9732-1.
McWilliams A., Siegel D., 2001. Corporate social responsibility: A theory of the firm perspective.
Academy of Management Review 26(1), 117–127. doi: 10.5465/AMR.2001.4011987.
Paliwoda-Matiolańska A., 2009. Odpowiedzialność społeczna w procesie zarządzania przedsię-
biorstwem (Social responsibility in the management of the company). C.H. Beck, War-
szawa (in Polish).
PARP, 2012. Ocena stanu wdrażania standardów społecznej odpowiedzialności biznesu wraz
z opracowaniem zestawu wskaźników społecznej odpowiedzialności w mikro, małych,
średnich i dużych przedsiębiorstwach. (Evaluation of the implementation of the standards
of corporate social responsibility, along with developing a set of indicators of social re-
sponsibility in the micro, small, medium and large enterprises). Millward Brown SMG/
/KRC PwC (in Polish).
Pedersen E.R., 2006a. Perceptions of Performance: How European Organisations Experience
EMAS Registration. Forthcoming in Corporate Social Responsibility and Environmental
Management.
Pedersen E.R., 2006b. Between Hopes and Realities: Reflections on the Promises and Practices
of Corporate Social Responsibility (CSR). PhD School of Technologies of Managing,
Copenhagen Business School, Copenhagen.
Pedersen E.R., Neergaard P., 2006. The bottom line of CSR: A different view. In: F. Hond, F.G.A. de
Bakker, P. Neergaard (Eds). Forthcoming in Managing Corporate Social Responsibility in
Action: Talking, Doing and Measuring. Ashgate Publishing, Hampshire.
Poksinska B., Dahlgaard J.J., Eklund J., 2003. Implementing ISO 14000 in Sweden: Motives, be-
nefits and comparisons with ISO 9000. International Journal of Quality and Reliability
Management 20(5), 585–606.
Rabiański R., 2011. Biznes odpowiedzialny społecznie (Socially responsible business). Zagad-
nienia, korzyści, praktyki (Issues, benefits, practice). Wschodnioeuropejskie Centrum
Demokratyczne (East European Democratic Centre). Norweski Mechanizm Finansowy

Acta Sci. Pol.

The importance of Corporate Social Responsibility of enterprisese in business 125

(Norwegian Financial Mechanism). Minister Spraw Zagranicznych RP (Minister of Fo-

reign Affairs RP). (in Polish).
Rybak M., 2004. Etyka menedżera – społeczna odpowiedzialność przedsiębiorstwa (Ethics Mana-
ger – Corporate Social Responsibility). PWN, Warszawa (in Polish).
Sen S., Bhattacharya C.B., 2001. Does doing good always lead to doing better? Consumer reactions
to corporate social responsibility. Journal of Marketing Research 38(2), 225–243.
Stanisz A., 2007. Przystępny kurs statystyki z zastosowaniem Statistica PL na przykładach z medy-
cyny (Statistics course accessible for all with the use of Statistica PL program, illustrated
with the examples taken from medicine). Tom 3 (Volume 3). Analizy wielowymiarowe
(Multidimensional analysis). StatSoft, Kraków (in Polish).
Tabachnik B.G., Fidell L., 1996. Using Multivariate Statistics. 3rd edn. Harper and Row, New York.
Walsh J.P., Weber K.K., Margolis J.D., 2003. Social issues and management: our lost cause found.
Journal of Management 29(6), 860–882. doi:10.1016/S0149-2063(03)00082-5.

ZNACZENIE SPOŁECZNEJ ODPOWIEDZIALNOŚCI PRZEDSIĘBIORSTW

W DZIAŁALNOŚCI GOSPODARCZEJ

Streszczenie. Celem badań było określenie działań, jakie powinny podejmować przedsię-
biorstwa, by mogły być postrzegane jako odpowiedzialne społecznie oraz jakie czynniki de-
cydują o wyborze pracodawcy przez respondentów. Wykorzystano metodę sondażu diagno-
stycznego, a w niej autorski kwestionariusz ankiety, którym przebadano 1157 mieszkańców
województwa lubelskiego. Zastosowano dobór losowy warstwowy, a przy wyliczeniach
statystycznych analizę funkcji dyskryminacyjnej. Według respondentów, przedsiębiorstwo
społecznie odpowiedzialne to takie, które preferuje działania etyczne, dobrze traktuje pra-
cowników, ma uczciwy stosunek do pracowników i klientów oraz wspiera charytatywne
i ekologiczne organizacje. Przy wyborze pracodawcy najważniejsze okazały się zarobki,
opinia pracowników na temat atmosfery w firmie i perspektywa rozwoju pracowników.
W działaniach CSR należy wykorzystywać doświadczenia innych krajów w celu osiągnię-
cia najbardziej praktycznych metod zarządzania, uświadamiać przedsiębiorcom znaczenie
CRS, dbać o aprobatę społeczną firmy w mediach oraz dążyć do współpracy z władzami
i społecznością lokalną.

Słowa kluczowe: społeczna odpowiedzialność przedsiębiorców, etyczne działania, woje-

wództwo lubelskie

Accepted for print – Zaakceptowano do druku: 24.04.2014

Oeconomia 13 (2) 2014